Solana appears poised for a possible price surge against Bitcoin, with the SOL/BTC pair approaching a bullish breakout. Following an extended phase of consolidation within a symmetrical triangle pattern since March, SOL/BTC is making yet another effort to surpass the upper resistance line.
If successful, this could see Solana trading at a multi-month high. This analysis examines the likelihood of this scenario unfolding.
Solana Aims to Outpace Bitcoin
The SOL/BTC pair indicates the exchange rate between Solana and Bitcoin, currently at 0.0024, reflecting a 14% increase over the last 12 days.
When the SOL/BTC pair rises, it signifies an increase in SOL’s value relative to BTC. This situation indicates that SOL holdings are gaining more value in terms of BTC.
Observing the SOL/BTC pair on a one-day chart, we see that it is trending toward the upper line of the symmetrical triangle that has been its trading pattern since March. Within this framework, the asset’s price fluctuates between two converging trend lines, establishing levels of resistance and support.
Read more: Solana vs. Ethereum: The Definitive Comparison
A breakout above this upper resistance line would signal that bullish forces have triumphed over bearish momentum, indicating the potential for additional price gains. Moreover, the positive readings from the pair’s Balance of Power (BoP) suggest this breakout could happen soon.
The current SOL/BTC BoP, which assesses the balance between buying and selling pressures in the market, stands at 0.8. A positive BoP (above zero) indicates that buying pressure dominates selling pressure, implying more buyers than sellers, thus driving the price upwards.
The pair’s Relative Strength Index (RSI) further supports this bullish perspective. Currently, the RSI is on an upward trend at 60.26, indicating robust SOL accumulation among investors, overshadowing profit-taking activities.
Solana Price Forecast: A Multi-Month High is Approaching
The SOL/BTC pair has the potential to reach new peaks if demand for Solana continues to surpass that of Bitcoin. Insights from the Fibonacci Retracement tool suggest that a successful breakout above the upper resistance line could elevate the pair to 0.0031, a level last observed on March 18.
Such a development would allow SOL to trade above $200 for the first time in seven months.
Read more: Solana (SOL) Price Predictions for 2024/2025/2030
However, if Bitcoin strengthens against Solana, causing the pair to decline, the attempt to break resistance might fail, leading the pair to continue hovering within the descending triangle. In this case, it could drop to support at 0.0021, potentially bringing Solana’s price down to $133.58 if buying pressure significantly weakens.
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